Sallet One: What are the cold storage and hot storage of cryptocurrency?
Cryptocurrency hot storage is also known as a cryptocurrency hot wallet, which refers to the online storage of cryptocurrency, which is equivalent to that the wallet that stores cryptocurrency has always been online. In this way, data that needs to be frequently accessed by computing nodes is placed online for nearby calculations. This ensures that data acquisition for high-frequency use is more convenient. However, as long as the network is connected, there is a risk of being hacked, and asset security is low.
Cold storage is the offline storage of encrypted currency, which is equivalent to storing encrypted currency in a safe that is not connected to the Internet. It usually has low performance requirements, low cost and large capacity, so as to permanently store the private key to ensure its safety and security. reliability.
Currently commonly used cryptocurrency cold storage is mainly divided into three types: hardware wallets, paper wallets and brain wallets.
As the name suggests, a paper wallet is a piece of paper with an address and a private key printed on it. The security is very high, but due to the material, it is easy to be damaged, and there is a risk of loss and copying when you carry it with you. Under normal circumstances, paper wallets are more suitable for those who have a good understanding of the blockchain, and can transfer all cryptocurrencies with one use. That is to say, it is suitable for those who do not look at the rise or fall of the currency but just hold a certain cryptocurrency for a long time.
Brain wallets are more controversial. The principle is to enter a string of characters and use cryptography to generate the corresponding private key. You need to remember this string in your head. In theory, no one can steal it, but in fact, because the strings that people can think of are lackluster, and there are not a few cracked ones. Nowadays, very few people use brain wallets.
Hardware wallets are the most commonly used. Generally speaking, cryptocurrency wallets that are not connected to the Internet can be hardware wallets. You can make your own with a USB flash drive, mobile phone or computer that is not connected to the Internet, or you can purchase a professional chip-encrypted hardware wallet—Sallet One.